SACRAMENTO, Calif.--Arnold Schwarzenegger is a political moderate, but he has decided to lead a revolution against the unions and other interest groups blocking his package of four reform initiatives that will likely go before voters this fall.

On Friday, the governor nominated a socially liberal former legislator named Bruce McPherson to be California's new secretary of state, replacing scandal-plagued Democrat Kevin Shelley, whose resignation becomes effective at month's end. A few hours later, Mr. Schwarzenegger walked across the street and gave a fiery half-hour speech to 700 GOP activists in which he asked for their help in a "great battle." He pledged his reforms will go "to the source" of California's problems. "We're going right there where all the evil is, and we're going to fix this problem once and for all," he thundered. As the governor visits Washington this Thursday, national reporters should note that the most interesting political story other than Social Security this year is going to be the championship match for control of California.......